Trump tariffs are “wrecking ball to global economy” says O’Callaghan

The government must ensure that Ireland’s interests are protected in any EU response to President Trump’s trade tariffs, according to Social Democrats acting leader Cian O’Callaghan.

The Dublin Bay North TD, who also serves as the party’s spokesperson on finance, said President Trump has now fired the starting gun on an unprecedented global trade war, with punitive 20 per cent tariffs slapped on EU exports to the US.”

O’Callaghan expressed concern that Ireland, owing to it’s nature as a small, open economy with heavy ties to the US, is “more exposed than most” to the Trump tariffs.

“The implications of a lower 10% rate being applied to UK exports – which effectively creates a two-tier trading arrangement with America on the island of Ireland – will require particular focus,” he noted.

Ireland falls under the European Union as a whole, which was hit with a 20% rate.

“The 20% rate will badly hit Irish exports, particularly in the agri-food and drink sectors. The government must look at ways of best supporting the businesses that will be most impacted by Trump taking a wrecking ball to the world economy,” O’Callaghan said.

He noted that there is a small silver lining as far as Ireland is concerned – Ireland’s pharma sector was given a “stay of execution,” at least for now.

“It is clear from the US President’s previous comments that he has our pharma sector in his sights. Given that pharma comprises around €100 billion – or 45 per cent of our goods exports – this is deeply concerning,” he said.

“The pharma industry, and the people who work in it, are a critically important part of our economy. It is crucial that it does not get caught in the crossfire of a tit-for-tat trade war of attrition between the EU and the US.

“How the EU decides to retaliate to Mr Trump’s tariffs will have a huge impact on Ireland. The government must ensure that Ireland’s voice is loudly heard in any trade negotiations between Europe and the United States.

“It is important there is no kneejerk reaction from the EU to Trump’s tariffs and that cool heads prevail. Any escalation could risk Ireland’s pharma and tech sectors being dragged into a cross-Atlantic trade war – with devastating economic consequences.”